TH2016

Name: Date:

SEATWORK (20 POINTS)

Instructions:
1. Read and analyze the case below and respond appropriately.
2. You may open your handout for reference.
3. Write your responses in the space provided.
Case: Martha Soriano, a Baguio City-based retailer and caterer, noted the severe shortage of hotel
accommodations in the city, especially during the annual Panagbenga Flower Festival. She invited some
foreign friends, Arthur Hewitt, an American retiree, and Rose Ann Grundt, a German hotelier, to join and
invest in her new business venture - the Mayflower Hotel. Based on the business plan prepared, the
total capitalization needed for the 50-room standard hotel is Php20 million. Martha is only capable of
raising half of the total investment needed. What advice would you give Ms. Soriano as she forms a
partnership with two (2) foreign partners?

Martha should negotiate a fair investment distribution with Arthur and Rose Ann, ensuring each party's contribution and
ownership percentage are clearly defined. She must draft a comprehensive partnership agreement that outlines roles,
responsibilities, profit-sharing, decision-making processes, and exit strategies. Additionally, Martha should consult legal experts
to ensure compliance with Philippine laws on foreign investments and partnerships, such as the Foreign Investment Act and
requirements from the DTI and SEC.

4. Your output will be evaluated using the following rubric:

CRITERIA PERFORMANCE INDICATORS POINTS SCORE
Content The response is insightful with complete supporting details. 15
Organization The response is organized and easy to understand. 5
TOTAL 20
10 Seatwork 1 *Property of STI
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